Report Writing General Paragraphs
Financial Information:
Sales revenue is the income earned in the accounting period from trading activities.
If it falls - improve it, increase advertising -improve brand awareness however, wary of the high
costs associated with various forms of advertising.
The net profit margin is the net profit before tax + interest is expressed as a percentage of sales
revenue. Declined - provides insight into expenditure as it suggests expenditure has grown out of
control + find ways to reduce these costs.
Net profit is gross profit - expenses - growth indicates prices increased or expenses have been
reduced.
Net profit % - NP/SR - what does it mean + how much money is going on COS or expenses?
Impact on business operations. A method to improve NP - reduce expenses: changing suppliers,
relationship lost + wish to operate just-in-time method of production the chances of success will be
lower. An additional method - better stock control +order when needed.
ROCE is the return on capital employed i.e. the profit of the business expressed as a percentage of
the total amount of the money used to generate it. Decline - this means the return of the money
invested has fell dramatically. In order to improve ROCE - increase sales or reduce costs.
The current ratio assesses the firm's liquidity by dividing current liabilities into current assets.
Usually an acceptable ratio is between 1.5:1 to 2:1.
Gearing examines the capital structure of the business + compares the proportion of capital raised
from borrowed source + equity.
Near 50% level -use of bank loans - facilitate a takeover compared to the use of issuing shares.
Loans - paid back but shares don't carry any repayment. Interest on loans is deducted as an expense
before tax is paid leading to a reduction in tax. Loans - no voting rights whereas shares do this could
result loss of control. Furthermore, borrowing is riskier making TSS plc susceptible to interest rate
changes.
Based upon the financial data provided…However, I will now proceed to analysis the qualitative data
to gain more insight into whether or not they should proceed with the proposal.
Change Management:
Change is the modification or amendment of a current position.
Change management process of managing culture +performance from the current to the revised
future position.
In order to control change 4 key stage: to identify key causes + areas for change, preparing +plan,
implement change +creating a culture of change.
Discuss the change proposed.
This is a change which involves: different management team taking charge, - new working conditions
or new techniques.
Needs to be carefully managed with an appropriate change management programme in place.
Assign a manager to take charge of this change + to implement steps.
Clear lines of communication with all stakeholders involved- keep the process in a good + efficient
manner.
It may also be a necessity a change in culture in order to ensure the project is successful.
Resistance from employees so must plan for resistance + seek ways to resolve it.
Financial Information:
Sales revenue is the income earned in the accounting period from trading activities.
If it falls - improve it, increase advertising -improve brand awareness however, wary of the high
costs associated with various forms of advertising.
The net profit margin is the net profit before tax + interest is expressed as a percentage of sales
revenue. Declined - provides insight into expenditure as it suggests expenditure has grown out of
control + find ways to reduce these costs.
Net profit is gross profit - expenses - growth indicates prices increased or expenses have been
reduced.
Net profit % - NP/SR - what does it mean + how much money is going on COS or expenses?
Impact on business operations. A method to improve NP - reduce expenses: changing suppliers,
relationship lost + wish to operate just-in-time method of production the chances of success will be
lower. An additional method - better stock control +order when needed.
ROCE is the return on capital employed i.e. the profit of the business expressed as a percentage of
the total amount of the money used to generate it. Decline - this means the return of the money
invested has fell dramatically. In order to improve ROCE - increase sales or reduce costs.
The current ratio assesses the firm's liquidity by dividing current liabilities into current assets.
Usually an acceptable ratio is between 1.5:1 to 2:1.
Gearing examines the capital structure of the business + compares the proportion of capital raised
from borrowed source + equity.
Near 50% level -use of bank loans - facilitate a takeover compared to the use of issuing shares.
Loans - paid back but shares don't carry any repayment. Interest on loans is deducted as an expense
before tax is paid leading to a reduction in tax. Loans - no voting rights whereas shares do this could
result loss of control. Furthermore, borrowing is riskier making TSS plc susceptible to interest rate
changes.
Based upon the financial data provided…However, I will now proceed to analysis the qualitative data
to gain more insight into whether or not they should proceed with the proposal.
Change Management:
Change is the modification or amendment of a current position.
Change management process of managing culture +performance from the current to the revised
future position.
In order to control change 4 key stage: to identify key causes + areas for change, preparing +plan,
implement change +creating a culture of change.
Discuss the change proposed.
This is a change which involves: different management team taking charge, - new working conditions
or new techniques.
Needs to be carefully managed with an appropriate change management programme in place.
Assign a manager to take charge of this change + to implement steps.
Clear lines of communication with all stakeholders involved- keep the process in a good + efficient
manner.
It may also be a necessity a change in culture in order to ensure the project is successful.
Resistance from employees so must plan for resistance + seek ways to resolve it.
